Why install, why not upgrade? Fedora is simply a renamed Redhat and as such will easily upgrade. up2date is supposed to work (though I had problems), but yum works nicely. Manually install fedora-release to get your system release current, and then yum (if you don't already have it). Modify your yum.conf to point to your best mirrors, and then run "yum check-update"
. I find it easier at that point to manually install needed rpms which are on the CD (you'll have to do some dependency checking), or if you copy the files from the Fedora/RPMS directories on CD to a local filesystem you can build the proper header files so you can use yum directly without duplicately downloading all the rpms you need. This link
will tell you how to set up the local repository specifically, while here
will give you the whole scoop on yum.
Oh yes, don't forget to backup your system. I find it easiest to mirror the crucial filesystems locally and setup a dual duplicate boot system. Good luck.